To The Moon

it looks like BYD has bounced off the support level. but this is not the only reason for us to invest into the company.

$BYD(01211)$(& its respective US listing $BYD Co., Ltd.(BYDDY)$) looks to bounce off the current support level of about HKD$240+/-.  for both support and resistance, we need to treat this as a zone rather than a single price. this will help us to cater for traders who add buffer into the price due to their bullish or bearish sentiments as part of their price entry, profit taking or stop loss.

On 12Jan2022, the stock saw a strong 5.9% increase of about $14.59 to a price of $259.17. based on the 1 Day chart, we are expecting this trend to continue though we can also expect some profit taking.

for us to are trading with price action (after identifying support and resistance), there was a strong rejection of the support leading to a strong price surge yesterday.

Other reasons for optimism

as reported by Fortune.com China EV makers sold about 3.3 million units for 2021 (an increase of 154%) compared to 1.3 million in 2020 and 1.2 million in 2019. worldwide EV sales saw a surge of 69% based on the first 11 months of 2021. this confirmed that China is one of the leading countries for EV adoption.

2021 has been a great year for BYD after shipping out 603,783 units, a record 218% surge. this company, backed by Warren Buffet has been producing 10,000 more units for few consecutive months - a demonstration of their production capability. BYD is already one of the biggest electric bus makers and will be one of the biggest battery maker too.  in fact, their LFP  blade battery is one of the best, safest and most affordable battery in the world.  in anticipation of a growing global demand, they have recently expanded production into Xi'An. On top of this, BYD makes their own chips, making them the only fully integrated EV maker in the world. this means that apart from raw materials, they will be least affected by battery, chip and related supply chain challenges. this is a huge advantage for auto makers during this trying time. on top of these, BYD is also in the energy storage business.

With increasing sales to Europe, BYD is also sold out in Australia. there is much optimisation for this company. with sound fundamentals, there is much hope and there maybe a good buying opportunity with 1 Day chart showing signs of bottoming up.  while $Tesla Motors(TSLA)$dominates the news with GM and Ford, let us not miss out this great EV maker from the East. 

as always, please do our own due diligent before investing.  

@TigerStars